7 NEW builds over next 6 months with no contracts and a Company that doesn't appear to have the Financial capacity to pay for them !!.I love Investor willingness to look beyond the valley
large export facilities start to go on line late 2014 and through 2015 and 2016. So, ships operating on spot and short term rates will start to get longer term contracts. GLNG will also monetize the igloo (or is it the Eskimo?) late this year. Wells analyst Michael Webber is sharp and he rates it outperform. Others pay close heed to seekingalpha. I'm not one of them.
I agree - press release says they lost 24 million dollars in the quarter and that the market is challenging - yet its up $2.50 a share - this stock defies any any any logic - I just keep looking at it because if it was a shipping company like DRYS it would be on life support yet like Amazon it seems profit is meaningless and just goes higher - I wonder sometimes if I should invest in stocks because I really do not understand how stocks just defy logic.
Sentiment: Strong Sell
You have to study the LNG market and take the long view. I have held and traded a core GLNG holding since late 2010 and find that the long view can be more profitable than being concerned about short term movement.
I agree that the rising price action in GLNG is difficult to explain. I am still long this stock because the stock price has kept going up and up. With no profits they keep paying a 2.75% dividend and explaining that their cash flow supports it.
The only explanation for the rising stock price I can think of is that GLNG is pursuing the creation of floating LNG liquification sites. This would put them at least partially in the category of LNG which is also a big money looser until they get their first site operational next year. GLNG contends that floating liquification sites are quicker and cheaper to build than land based sites. I guess this remains to be seen.
I am long both GLNG and LNG. But I may reduce all or part of my GLNG holding sometime soon if the price action continues downward.
With respect, if you don't understand how their plan differs from those of DRYS or DSX than you don't belong investing in equities. While I understand that the price action has been quick, more so than I ever thought, it is justified based on the World shift to NG and the need of it from the West. GLNG has a realitively unique strategy that is backed by BIG MONEY CLEARLY!!! The question I have is, "Why can't you see that?" The market cap isn't all that stretched that this point....the market has already made up its mind that it likes the company's plan, its management, and the likelihood of success. If you are still doubting but want in I would personally say not to buy here, hope for a pullback to the upper-50s (which will likely occur at some point), if it holds support levels...buy it up. Or you do what I did with X.....don't buy and just watch it continue to go up and up and up and up and up and up......you get what I mean. But for the love, if you missed it....let it go! Go to X board, you won't see me crying over missed opportunity. Go find the next one and be patient in doing so. Best of luck, B